Ireland Tax Deductions

Corporate Income Tax Deductions:

• Expenses wholly and exclusively incurred for the purposes of the trade are generally deductible.

Deductible expenses include:

• Trading expenses.
• Salaries and wages.
• Rent and utilities.
• Interest expenses (subject to limitations).  
• Depreciation of capital assets (as per capital allowances).  
• Research and development expenses (with specific conditions).  
• Trading losses can generally be carried forward indefinitely against future trading income.  
• Specific temporary rules concerning the carrying back of losses have been put in place during times of economic hardship.

Capital Allowances:

• Capital allowances are tax deductions for the depreciation of capital assets.  
• Different rates apply to different types of assets.  
• Specific rules apply to industrial buildings and machinery.  

Interest Deductions:

• Interest expenses are generally deductible if related to business or income generation.  
• Limitations may apply, particularly concerning related-party transactions and excessive interest.

Research and Development (R&D) Tax Credit:

• Ireland offers a tax credit for qualifying R&D expenses.  
• The credit can be used to reduce corporation tax liability.
• Specific conditions apply.

Intangible Asset Amortization:

• Amortization of intangible assets acquired for business purposes may be deductible.
• Specific rules and limitations apply.

Loss Relief:

• Trading losses can be offset against other income in certain circumstances.  
• Capital losses can be offset against capital gains.  

Donations to Approved Bodies:

• Certain donations to approved charitable bodies can be deductible.

Pension Contributions:

• Employer pension contributions are generally deductible.  
• Specific rules apply to contributions to approved pension schemes.

Double Taxation Relief:

• Relief may be available for foreign taxes paid on income, under double taxation agreements.
• Unilateral relief may also be available in certain circumstances.

Important notes:

• Ireland's tax laws are complex, and deductions are subject to various conditions and limitations.  
• It is advisable to consult with a qualified tax professional in Ireland for accurate and personalized guidance.